Debt Counselling

WHAT IS DEBT COUNSELLING?

Debt can feel overwhelming, but you don’t have to face it alone. At SCB Debt Solutions, our debt counselling service is designed to help you understand your financial situation and develop practical strategies to regain control.

Together, we’ll review your debts, income, and expenses to create a realistic budget tailored to your needs. Our Licensed Insolvency Trustee will provide expert advice on managing payments, reducing debt, and building long-term financial health. This service is ideal for individuals who feel burdened by their financial obligations but want to avoid drastic measures like bankruptcy. With SCB’s compassionate guidance, you’ll leave with a clear plan to take control of your finances and the confidence to move forward.

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DEBT COUNSELLING FAQ'S

Get your questions answered

Debt counselling in Canada is designed to help individuals manage overwhelming debt through a structured repayment plan. A licensed Insolvency Trustee can assess your financial situation, negotiate with creditors, and create an informal Debt Management Plan (DMP) that consolidates your payments into
a single, manageable amount. Many creditors agree to reduce or eliminate interest rates, making it easier to repay what you owe. Debt counselling helps you avoid more formal measures
like bankruptcy.
Debt counselling is available to Canadians who are struggling to manage their unsecured debts, such as credit card balances, personal loans, payday loans, and lines of credit. To qualify, you must have a steady income that allows you to make structured repayments or access to a lump sum that can be offered as a settlement. However, if you are already insolvent and unable to pay any of your debts, you may need to explore other options like a consumer proposal or bankruptcy. A Licensed Insolvency Trustee will evaluate your financial situation and determine the most suitable debt relief solution for you.
Debt counselling offers several key benefits. It helps you avoid bankruptcy by providing an alternative repayment plan that allows you to pay off your debts under more manageable terms. Many creditors agree to lower or freeze interest rates, reducing the total amount you owe. Instead of juggling multiple payments, you make one affordable monthly payment, which is distributed to your creditors by the Trustee through an informal debt management plan or by a non-profit credit counselling agency through a formal debt management plan. Debt counselling also provides financial education, equipping you with better budgeting skills to prevent future financial difficulties.
Debt can arise from many factors, including job loss, medical expenses, relationship breakdown, high-interest credit card usage, unexpected emergencies, and financial mismanagement. In some cases, even responsible individuals find themselves in overwhelming debt due to rising living costs or economic downturns. Debt counselling provides guidance on how to assess your financial situation, prioritize expenses, reduce unnecessary spending, and develop better money management habits. A counsellor can also offer practical strategies for dealing with creditors and creating a sustainable plan to get back on track financially.
A debt counselling session with an LIT begins with a detailed financial assessment, where we review your income, expenses, assets, and debts. Based on this evaluation, we provide personalized recommendations tailored to your situation, whether it’s budgeting assistance, informal debt restructuring, a referral to the OPD program in Alberta, consumer proposal, or bankruptcy (usually as a last resort). We also offer financial education, money management strategies, and credit rebuilding advice to help prevent future financial difficulties. The goal of these sessions is to give you a clear path forward with practical solutions to regain control of your finances.

I have the ability now to save for my retirement. The most surprising things about this experience were the amount of debt that was eliminated, the hope I now have and, the help and support I received from the amazing people at SCB. They advise you and help you get through this. THANK YOU SCB